The Security Features of Virtual Cards and How They Protect Your Funds

It goes without saying that there are many benefits of virtual cards. One such benefit is its security. However, as with any online transaction, there is a risk of fraud and other malicious activities. 

To counter these threats, virtual cards are equipped with various security features that protect your funds and personal information. This is due in part to the added security features of virtual cards, such as one-time use and spending limits.

In this article, we will explore the security features of virtual cards and how they work to keep your transactions safe and secure.

Before we dive into the article, I want to let you know that I’ll be using Bitnob’s virtual dollar card as my case study. If you don’t have a virtual card, you can click here to download the Bitnob app and create a virtual card right away. 

With that out of the way, here are 3 security features and how they protect your funds:

Two-factor authentication to log in

Two-factor authentication is a security feature that requires the user to provide two forms of identification to access their virtual card. This typically involves a password or PIN as well as a second form of identification such as a fingerprint or facial recognition. 

On the Bitnob app, you have the option to turn on two-factor authentication. When this option is enabled, anyone who wants to get access to your Bitnob virtual card details will have to provide the second pin. This added layer of security makes it more difficult for fraudsters to access your virtual card.

Limited spending capabilities

Virtual cards often have a limit on the amount that can be spent on them. This is another security feature that helps to minimize the impact of fraudulent activities. Even if a fraudster gains access to your virtual card, they will only be able to make purchases up to the set limit, which minimizes the potential financial loss.

For example, let’s say you create a virtual dollar card on the Bitnob app and funded your card with $20. If anyone gets access to your virtual card details, they’ll only be restricted to the $20 available on the card. 

An additional feature on the Bitnob virtual card is that you can withdraw the funds in your compromised card. If you suspect that someone has access to your virtual card details, you can easily withdraw all the funds in your virtual card and your USD wallet on the app gets credited. 

Ability to freeze your card

On the Bitnob app, you are given the option to freeze your card. When you freeze your card, those who have access to your virtual card details can no longer access the funds in your virtual card.  

You can delete that card and the funds in the card are refunded to your USD wallet. Since the process of creating a virtual card on the Bitnob app is simple, you can create a new card within minutes and continue shopping. 

What next?

Now that you know you know the security features of virtual cards, it’s important that you always exercise caution when it comes to handling your virtual cards. 

Here are a couple of handy rules to make sure that your virtual card details are kept safe:

Keep your card details private: Avoid sharing your virtual card details with anyone, including friends and family members. Keep your card details confidential and avoid sending them over unsecured networks or sharing them with random people.

Use secure websites: Only use your virtual card for online transactions on trusted and secure websites. Look for websites with "https" in the URL and a padlock icon in the address bar. Those are indicators that the website is secure to make payments on. 

Monitor your transactions: Keep a close eye on your Bitnob virtual dollar card transactions. This helps you stay on top of which transactions went through and identify any transactions which weren’t carried out by you. 

Keep your devices secure: Make sure to use strong passwords on your Bitnob app and also be cautious about who is using your phone. 

If you’ve not created your Bitnob virtual dollar cards yet, click here to download the Bitnob app and create yours today.